2020 Minimum Wage Amount is Announced

2020 Minimum Wage Amount is Announced

Minimum wage amount is announced by The Minimum Wage Commission which is effective as of 1st of January 2020. Following this development, gross minimum wage has been set as 2.943,00 TRY and net minimum wage has been set as 2.324,70 TRY. Minimum wage amount is increased by 15,03% compared to 2019.

2019 gross minimum wage was 2.558,40 TRY.

2020 minimum wage and employer cost calculation can be seen in Table 1 & 2:

Table 1. 2020 Monthly Minimum Wage Calculation in TRY

Gross Minimum Wage

2.943,00

Social Security Employee Premium (14%)

412,02

Unemployment Employee Premium (1%)

29,43

Income Tax (15%)

375,23

Salary Stamp Tax (0,00759%)

22,43

Minimum Living Allowance

220,73

Net Minimum Wage

2.324,70

Table 2. 2020 Monthly Minimum Wage Employer Cost Calculation in TRY

Gross Minimum Wage

2.943,00

Social Security Employer Premium (15,5%)*

456,17

Unemployment Employer Premium (2%)

58,86

Employer Cost

3.458,03

*Social Security Employer Premium rate is 20% under normal circumstances. However there is 5% discount according to Law No.5510 if payments are done within legal time period to Social Security Institution.

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